The Long Term Care Market is estimated to be valued at US$ 1,162.21 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Long term care (LTC) refers to a variety of services which help meet both medical and non-medical needs of people with chronic illness, disabilities or conditions who cannot care for them self independently for an extended period. It provides medical as well as personal care services like help with activities of daily living like dressing, bathing, eating, and helps managing chronic conditions on a long-term basis. These include nursing homes, adult day services, hospice care and home health aides provided at patient's home.
Market key trends:
One of the key driver for the long term care market growth is the rising geriatric population globally. As per United Nations report, there were 703 million people aged 65 years or over in the world in 2019 and this population is projected to double to 1.5 billion in 2050. The aging population is more prone to chronic diseases, disabilities and loss of independence which demands long term care services for assisted living. The continued growth of the geriatric population globally is thus expected to drive the demand for long term care services over the forecast period.
Porter’s Analysis
Threat of new entrants: The long term care market requires huge capital investments in facilities and skilled workforce which acts as a major entry barrier for new players.
Bargaining power of buyers: Individual customers have low bargaining power due to inelastic demand for long term care services. However, government agencies are major buyers and have significant influence.
Bargaining power of suppliers: Labor market for healthcare workers is quite tight making it difficult for facilities to source trained staff at low costs. This gives suppliers moderate bargaining power.
Threat of new substitutes: Though home care services offer a cheaper option, they cannot replace institutional care completely. Thus, threat from substitutes is low.
Competitive rivalry: Being a fragmented industry with large number of local and regional players, competition is intense based on service quality, innovation and pricing.
SWOT Analysis
Strengths: Established brand names, extensive service portfolio and network of facilities across regions.
Weaknesses: Higher operating costs, staff retention challenges, and vulnerability to regulatory changes.
Opportunities: Expanding aging population,rising affluence, growing acceptance of long term care insurance.
Threats: Economic slowdowns affecting private spending, credentialing requirements for foreign healthcare workers.
Key Takeaways
The global Long Term Care Market Share is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing prevalence of chronic diseases among geriatric population. It is estimated that the number of Americans aged 65 and older with Alzheimer's disease is projected to reach 13.8 million by 2050.
The North American region currently dominates the market owing to availability of advanced healthcare infrastructure and rising healthcare spending. Within the region, the U.S. accounts for the major share due to significant per capita healthcare expenditure and presence of major players. However, the Asia Pacific region is expected to grow at the highest CAGR during the forecast period with expanding medical tourism and rapidly growing elderly demographics in China and India.
Key players operating in the long term care market include Brookdale Senior Living Inc., Sunrise Senior Living, LLC, Kindred Healthcare, LLC, Genesis Healthcare, Home Instead, Inc., Senior Care Center, Capital Senior Living Corporation, and Diversicare Healthcare Services, Inc. among others. The players are focused on mergers and acquisitions to expand geographic footprint and service offerings.
Read More,
https://www.insightprobing.com/long-term-care-market-trends-size-and-share-analysis/
